Virtualized Evolved Packet Core (vEPC) Market to Reach USD 13.65 Billion by 2030

Future of Market Research

Future of Market Research

vEPC market thrives on increasing volume of mobile data traffic

New York, U.S., May 18, 2022 (GLOBE NEWSWIRE) — vEPC market overview:
According to a comprehensive research report by Market Research Future (MRFR), “vEPC Market” insights by Deployment, By Components, By Use Case, By End User, By Region – Forecast to 2030 » Market Size to reach USD 13.65 billion, growing at a compound annual growth rate of 21.12% by 2030.

Virtualized Evolved Packet Core Market Scope:
Increase in the volume of mobile data traffic; increased obligation to reduce operating expenses (OPEX) as well as capital expenditure (CAPEX); growing demand for commercialization of 5G networks, agile networks; and the deployment of IoT and the increase in demand for broadband services instead of mobile networks are improving the core market share of virtualized advanced packets. However, factors such as increasing number of security issues in network infrastructures coupled with economic decline due to COVID-19 outbreak pose severe challenges to the virtualized advanced packet cores market.

The Top vEPC Market Key Players Covered Are:

  • ZTE Corporation (China)

  • Cisco Systems, Inc. (USA)

  • Telefonaktiebolaget LM Ericsson SE (Sweden)

  • Affirmed Networks, Inc. (USA)

  • Mavenir Systems, Inc. (USA)

  • Huawei Technologies Co., Ltd. (China)

  • Samsung Electronics Co, Ltd. (South Korea)

  • Tecore Inc. (US)

  • Nokia Corporation (Finland)

  • Parallel Wireless, Inc. (USA)

  • F5 Networks, Inc. (USA)

  • NEC Corporation (Japan)

  • IPLOOK Technologies Co Ltd (China)

  • Polaris Networks (USA)

  • Athonet SRL (Italy)

  • LEMKO Corporation (USA)

  • Metaswitch Networks (UK)

  • and Intel Corporation (USA)

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Exclusively encompassed USP market:
vEPC Market Drivers
The surge in the use of wireless devices to access mobile networks around the world is accelerating the growth rate of mobile data traffic. Mobile data traffic around the world has increased due to the growing penetration of smartphones coupled with the easy availability of inexpensive broadband network services. For example, reports reveal that smartphone penetration can be expected to increase from 70% in 2021 to 85% by the end of 2025. Ericson claims that 5G networks will carry 50% of total mobile data traffic from by 2027. Therefore, the increase in mobile data traffic gives rise to the need for virtualized advanced packet-based solutions for data traffic management. The virtualized advanced packet core helps efficiently manage mobile data traffic, thereby improving throughput, reducing network congestion issues, improving service quality and optimizing resource utilization.

Virtualized Advanced Packet Core Market Constraints

Like many complex new technologies introduced to the market, vEPC also poses major challenges to MNOs. Previously, MNOs depended on one or two major vendors, including Nokia, Ericsson, Cisco, and Huawei, or any other to use their mobile cores, and mobile cores are used as embedded systems on hardware platforms.

That said, proprietary hardware platforms cannot be exchanged between different vendors and are developed to support certain network functions. Therefore, while integrating a vEPC with existing mobile core and back-office systems (OSS/BSS), MNOs face challenges as it requires significant customization.

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COVID-19 analysis

The COVID-19 pandemic has adversely affected the majority of industries around the world, prompting a number of public health measures and disrupting manufacturers’ supply chains. The spread of the pandemic has resulted in the closure of various operational facilities around the world.

However, companies active in the virtualized advanced packet cores market are trying to safeguard the well-being and health of customers while supporting the government’s goals of maintaining vital business operations. Reduced cash flow has been another major concern, with most customers late in payment or unable to make purchases, while inventory is canceled due to disrupted supply chains. On the bright side, many companies are working on strategies to remain resilient during the pandemic with minimal economic losses.

Players try to optimize their operations as well as strategies to sustain and ultimately beat the intense competition.

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vEPC Segmentation Market Covered by Research:
The core industry of virtual advanced packets, in terms of components, caters to solutions as well as services. The services segment will witness the highest growth between 2020 and 2027. The services segment plays a vital role in the utilization of next-generation networking solutions.

Regarding the application, the virtualized default packet code market can be considered for VOLTE, LTE, loT and M2M, VOWifi, BWA and MPN and MVNO. LTE, VOLTE and VOWifi may project the strongest growth in the coming years.

According to end users, the virtualized advanced packet market can be divided into telcos and enterprises.

Virtualized Evolved Packet Core Market Regional Analysis
The APAC market leads all regions, given the increasing adoption of modern technologies in many sectors. The expansion of infrastructure in the region, particularly in South Korea, Japan, Singapore, Australia, India and China, coupled with the growing use of 4G and 5G networks, offers significant opportunities for developers of vEPC solutions. Due to the huge mobile subscriber base, vEPC companies in the region have become extremely competitive and now focus heavily on selling improved customer service. The increased use of smartphones in the region would increase the demand for advanced vEPC technologies that could enable enterprises to boost their network capacity while reducing the cost of mobile capacity.

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North America can expect to accumulate a strong growth rate in the coming years, given the strong base of several renowned telecom giants. Mobile operators in the region make extensive use of their networks, including Internet of Things/IoT, wireless broadband, and Machine to Machine (M2M). In 2018, the US government rolled out the Citizens Broadband Radio Service (CBRS) band for enterprises and private operators, which acted in favor of the vEPC solution market. Increased deployment of multimedia services along with increased need for VoLTE is expected to further increase the market share in the region. The presence of modern telecommunications network infrastructure coupled with the increasing adoption of 4G technology, the regional market will continue to experience substantial growth over the next couple of years. Other growth drivers may be the presence of numerous telecom giants and supportive government initiatives that enhance the use of virtualized advanced packet cores.

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